Dear all,

I had faced an issue regarding the product cost price control. Here are the issue background and questions:

System Paramter Settings
Method of calculating average purchase price is set to ‘Current Inventory’ in session tdpur4100m000

Purchase price priority is set to ‘Ap, Cp, Lp, Si’ in the session ticpr1101m000

Issue-related info:
Inventory on hand when calculate product cost price: 10,000

Last purchase receipt quantity is 20,000 with the purchase price 2.00

Latest purchase price is 2.50 and new purchase order was issued.


When the user calculates the product cost price by using session ticpr2210m000, the product standard cost price was changed to 2.50.

Why?

As I knew, if the method of calculating average purchase price is set to ‘Current Inventory’, that mean the system will use the weighted average method to calculate the product cost price. If this is true, then the product cost price should be updated as 2.00 instead of 2.50.

Anyone can advise on this matter?

Thanks.

With Regards,
Jin Seong

The average price in item master is updated either on PDPO or on approval of purchase invoice. Then only new average price can come as cost price .

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Hitesh R Shah

Hi, Hitesh,

Thanks for the update. But what is PDPO?

With Regards,
Jin Seong

process delivered purchase order..

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Hitesh R Shah